The former JP Morgan official shares how he learned about crypto and why the Kadena exchange is not ready to postpone its POW framework.
When talking about his blockchain, the CEO of Kadena Blockchain, Stuart Popejoy, said, “We have to learn to love crypto throughout the transition time.”
This statement looks like an adjusted point of view, although the merits of the Kadena blockchain are still debatable.
But from being the entity of JP Morgan back in 2016 to a public blockchain in 202, Popejoy has been an integral part of the blockchain. Today, Kadena is going through technological upgrades to make the operations more feasible for the users.
In order to support the massive scale of trade, upgrades are important. The blockchain deals with secure smart contracts, and it has adopted scalability as a safety feature.
The CEO also said that he is happy with the fundamental framework of the blockchain and the design of Bitcoin.
He added that the energy consumption regarding the proof of work is not an issue; the real problem is that it consumes energy inefficiently.
Moreover, the main issue with Bitcoin’s system is that it’s still the same old system that has not been improved over the past 15 years.
He also does not see the ‘proof of work’ as an issue, but the lack of advancements in how proof of work is being implemented is an issue.
What is Proof of Work and How Does It Work?
Proof of Work (PoW) is one of the oldest and most famous terminologies in blockchain development. Bitcoin and Kadena both use the PoW mechanism in their operations.
Basically, PoW is a mechanism that requires computing power to validate the cryptocurrency transactions and save the data of that transaction of the blockchain on which the transaction is made.
In 2009, Bitcoin became the first entity that has totally adopted the proof of work mechanism.
Many other centralized cryptocurrencies have adopted the same mechanism of recording transactions.
This mechanism is largely being used in cryptocurrency mining. Miners have to validate the transaction upon the successfully mined new tokens.
Moreover, PoW also allows Bitcoin and other centralized digital tokens’ transactions to be processed peer-to-peer, with no need for a third party, in a secure way.
However, the biggest drawback of the PoW mechanism is that it requires massive energy resources.
Kadena Has Adopted the Horizontal Scaling of Proof of Work
The CEO of Kadena blockchain said he knows how the horizontal scaling of the PoW mechanism works. He also added that Kadena, as of today, can settle down the entire U.S. stock market. The firm’s focus is to bring real-world scalability to the blockchain.
Moreover, the top blockchain management said that for their proof of stake (PoW) and proof of stake (PoS), these mechanisms are opportunities with their respective pros and cons.
As Kadena is poised perfectly to move forward with the PoW mechanism. It invests heavily in bringing innovation in PoW to process fast and reduce energy consumption.
But critics replying to Popejoy’s statement have said that not everyone is interested in speed, as security and operational efficiency are more important than processing at immense speed.
But Popejoy believes that smart contracts and security tokens can be integrated with clawbacks to achieve higher transparency.
Kadena blockchain is currently having 20 parallel networks operating. However, more networks would consume the very same quantity of energy.
Besides energy, money is also an important issue regarding the usage of proof of stake (PoS).
PoW first produces the money, then uses the same money to determine who was running that system, and then the money rights are transferred to those who have completed the puzzle.
That is why with the passing of every day, more and more people are criticizing the PoW mechanism. This is not a feasible way to transfer the money to the owners.